We address the issue using data from our international on-line scorecarding survey. This survey examines, among other things, the adoption and use of scorecarding systems worldwide (for more information or to participate in the study, go to www.graziadio.pepperdine.edu/shaps). Available on the web in eight languages, the survey is sponsored by CMA Canada and other professional and consulting organizations around the world. (Other survey sponsors include the AICPA, Balanced Scorecard Nedierlands, CAM-I, CIMA, CompetitiveScodand.com, Deloitte Germany, Hyperion Solutions, IMA, Van der Leer, and Yacsa.com.) The role of these non-financial sponsors was to solicit their members' or clients' participation in the survey.

As part of the survey, a series of attributes were provided from which respondents could identify those they currently include in their scorecarding system, and those they think should be included (as possible future enhancements). Also included in the survey are a series of questions regarding the link, if any, of respondents' scorecarding systems to their organizations' strategies. We matched up the list of attributes and questions to the [Robert Kaplan] and [David Norton] six key principles of a strategy-focused organization. We then analyzed responding organizations in terms of the principles that they are (and are not) following, and the benefits received from their scorecarding systems.

In this article we used the data from our scorecarding survey to examine the impact of the existence of a strategy focus on the effectiveness of scorecarding systems. We found that the vast majority of best practice scorecard organizations have a strong strategic focus in their scorecard systems. These same organizations enjoy significant benefits from these systems. Most organizations that have not realized significant benefits from their scorecard systems have a weak strategic focus in their system. It is thus clear that organizations diat are considering deploying scorecard systems should give close attention to the level of strategic focus when designing and implementing their system to optimize die value received.

Scorecarding systems are the subject of heightened interest in organizations wanting to improve their performance. These organizations approach the deployment of scorecarding systems from several directions. An unresolved issue is whether organizations that have strategy-focused scorecarding systems receive the same, greater, or fewer benefits as organizations whose systems are more tactical. In this article, the six main principles identified by Kaplan and Norton as being important when building a strategy-focused organization are examined. These are: 1. Build an executive leadership team to mobilize change. 2. Translate strategy into operational terms. 3. Link and align the organization around its strategy. 4. Make strategy everyone's job. 5. Link strategy and budgeting. 6. Make strategy a continuous process. Organizations that are considering deploying scorecard systems should give close attention to the level of strategic focus when designing and implementing their system to optimize the value received.

Guidelines
Success factors
Performance evaluation
Balanced Scorecard